This piece has been cross-posted from the NYU Law Compliance and Enforcement blog.
By: Timothy J. Lindon, Vice President and Chief Compliance Officer at Philip Morris International Inc.
The compliance message to companies from Washington is practical and encouraging. Regulators are not looking to reward check-the-box programs or companies that simply say the right things about integrity in their Codes of Conduct. They are looking for innovative approaches that work to prevent misconduct in the real world, and can be measured.
The problem of course is identifying and measuring what works. We have lots of compliance metrics like training completion rates and the number of helpline calls, but none of them measures fully the impact of our programs on ethical decisions by individual employees. In fact, research shows that many of the activities credited under the federal sentencing guidelines may actually be counter-productive. For example, training that is regarded by employees as a check-the-box exercise is viewed as insincere and undermines compliance with policies.
So what works?